Ahlstrom's holding in Munksjö is included in other investments in the balance sheet and is valued at fair value. Ahlstrom will book a capital loss of EUR 0.7 million from the transaction in its Q1/2014 financial accounts.
Based on a price risk sharing agreement between Ahlstrom and EQT, the largest shareholder in Munksjö, Ahlstrom is entitled to compensation from EQT in Munksjö shares for 50% of the difference between the original subscription price of the sold shares and the selling price.
Due to the agreement Ahlstrom has recorded in the 2013 financial accounts an income of EUR 3.8 million and will record a further income of 0.4 million in its Q1/2014 financial accounts. In total, the impact on Ahlstrom's equity will be negative EUR 0.4 million.
"This was the appropriate time to reduce our shareholding in Munksjö given the interest in the market. By this transaction we strengthen our balance sheet, and at the same time Munksjö's shareholder base will be broadened," said Ahlstrom's President & CEO Jan Lång.
A total of 700,000 of the sold shares valued at approximately EUR 3.57 million are sold to Vimpu Intressenter Ab, the largest shareholder of Ahlstrom.
Following the sale of shares, Ahlstrom's shareholding in Munksjö will be 6,767,220 shares, representing 13.25% of total shares. Assuming EQT will compensate Ahlstrom in Munksjö shares, Ahlstrom's shareholding in Munksjö will increase to 7,585,873, or 14.86% of the total shares.
Ahlstrom is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. Our products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, diagnostics, wallcoverings, flooring and food packaging. We have a leading market position in the businesses in which we operate.
Apparel/Garments | On 28th Jun 2017
Raymond, Indian textiles and apparel major, has decided to invest Rs...
Textiles | On 28th Jun 2017
The Goods and Services Tax (GST) is at long last all set to be rolled ...
‘Portugal is taking away a major share of the mill made sector.’
‘New vendor is welcome if he offers cost, quality and timely delivery’
‘There has been an increase in demand for water based inks, rather than...
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
Iago Castro Asensio
RCfil Distribuciones S.L.
Iago Castro Asensio, International Business Manager of RCfil...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
"You have to truly understand what your client wants, know her needs, what ...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Rupa Sood and Sharan Apparao
Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...